New fund from Addenda Capital aims to improve society

Addenda Capital announced Jan. 22 that its new Addenda Impact Fixed Income Pooled Fund is seeded and ready to take in new investors.

The fund seeks to meet the needs of Canadian institutional investors and high net worth clients who want to make a positive impact on society through their investments.

Addenda Capital says the new investment solution is one of the first domestically-focused fixed income impact investment funds in Canada.

Investors are looking to effect change

"More and more, investors are looking to effect change while achieving financial returns. Some pensions and endowments want to align better their investments with their mission and their values. We are making impact investing accessible to investors as they can simply substitute some or all of their traditional fixed income allocation with our Impact Fixed Income Fund," stated Roger Beauchemin, President and Chief Executive Officer of Addenda Capital. "As Canada is getting ready to host the G7 Summit later this year, our Fund is the perfect opportunity for investors to take a concrete action towards some of Canada's G7 Presidency priorities, namely sustainable and inclusive growth, gender equality and climate change."

Climate change

The fund, which was initially established in December 2017, seeks income and long-term capital growth, says Addenda Capital. It includes mainly Canadian securities such as investment grade public debt, loans and commercial mortgages. The Fund's investments are currently focused on four broad themes: Climate Change, Health and Wellness, Education and Community Development.

Addenda Capital is backed by its major shareholder, The Co-operators, which has pledged six to ten per cent of its assets to impact investing by the end of 2018.